This study analyzed seismic responses of shallow rectangular tunnels within the framework of soil-structure-soil interaction. The idealized soil profile and properties were derived from site-specific investigation reports. Racking curves, typically used in design, were reevaluated to reflect local soil conditions, nonlinear soil behavior, and seismic influences. Results differed significantly from traditional literature findings, emphasizing the importance of localized factors. Finite element methods enabled nonlinear soil parameter modeling and time-history analysis of soil-structure systems. Literature reviews and case studies identified potential damage states with discrete damage levels. The findings quantified probabilities of these damage states and established recurrence relationships for system damages. Fragility curve analyses, widely employed in structural engineering, were used to develop graphical representations of damage probabilities. This study's outcomes provide insights into the seismic behavior of tunnels under localized conditions and enhance reliability in geotechnical and structural engineering designs.